OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best confirmed the Financial Strength Rating (FSR) of A + (Superior) and the Long Term Issuer Credit Rating (Long Term ICR) of âaa-â (Superior) of the members of Nationwide Group (Nationwide). At the same time, AM Best confirmed the FSR of A + (Superior) and the long-term ICR of âaa-â (Superior) of Nationwide Life Insurance Company and its subsidiaries, Nationwide Life and Annuity Insurance Company and Jefferson National Life Insurance Company . These companies are the principal life insurance / annuity subsidiaries of Nationwide Financial Services Inc. (NFS), and collectively known as the Nationwide Life Group. Additionally, AM Best has confirmed NFS ‘long-term ICR of “a-” (Excellent) and all of its existing long-term and short-term issue credit ratings (long-term IR; short-term IR) . AM Best also confirmed the FSR of A- (Excellent) and the long-term ICR of “a-” (Excellent) from Harleysville Life Insurance Company (HLIC). The outlook for these credit ratings (ratings) is stable.
In addition, AM Best has confirmed the long term IRs of âoneâ (excellent) of the excess notes issued by Nationwide Mutual Insurance Company (Nationwide Mutual). Finally, AM Best confirmed the FSR of B ++ (Bon) and the long-term ICR of âbbbâ (Bon) of Titan Insurance Company (Titan). The outlook for these ratings is stable. All companies are headquartered in Columbus, OH, unless otherwise specified. (See link below for a detailed list of all companies and ratings.)
Nationwide’s ratings reflect the strength of its balance sheet, which AM Best considers to be the strongest, as well as its marginal operational performance, favorable business profile and appropriate enterprise risk management (ERM). These ratings also take into account the extent of the organization’s resources, as reflected in the company’s consolidated results.
Nationwide’s risk-adjusted capitalization remains more than favorable to its risk profile and is at the highest level, as measured by Best’s capital adequacy ratio (BCAR). This included buffer positions against significant weather events and losses from natural disasters. The overall balance sheet assessment also takes into account the growth and quality of surpluses, as well as the financial flexibility of the organization. The impact of reserve volatility in certain business sectors partially offsets this effect. Nationwide’s ratings also reflect underwriting results that are consistently lower than those of its peers and industry averages in its major P&C businesses. While Nationwide has implemented a wide range of strategic and operational initiatives to improve underwriting performance, the benefits of these plans have yet to gain popularity. AM Best notes that despite this, revenue growth has been strong and operating results are on track to be favorable to the previous year through the end of 2021. Strong investment results have strengthened underwriting performance in recent years.
The ratings given to Nationwide Life Group reflect the strength of its balance sheet, which AM Best considers to be the strongest, as well as its strong operational performance, favorable business profile and appropriate ERM.
The assessment of the strength of the group’s balance sheet remains anchored by its risk-adjusted capitalization at the strongest level, as measured by BCAR, as well as by the overall financial strength and flexibility of the organization. AM Best notes that the quality of the group’s surpluses is somewhat lower given the use of affiliated excess notes and captive insurers, which ensure that some redundant reserve needs are met within the capital structure. Nationwide Life Group’s operational performance continues to reflect its diversified product portfolio and geographic reach, with favorable sales growth across all commodities and strong operating results reported in the first three quarters of 2021. L The organization continues to benefit from its market leading position among provider pension plans, as well as the top 10 carriers in its core life insurance and annuity markets.
HLIC’s ratings reflect the strength of its balance sheet, which AM Best considers very strong, as well as its marginal operational performance, limited business profile and appropriate ERM. HLIC stopped writing new business in 2014 and its traditional business continues to operate as planned.
Titan’s ratings reflect the strength of its balance sheet, which AM Best considers adequate, as well as its marginal operational performance, limited business profile and appropriate ERM.
The ratings reflect the support provided by the Nationwide organization in all aspects of Titan’s short and long-term day-to-day operations. Titan serves a targeted target market with a distinct dynamic to benefit the Nationwide business.
A complete list Nationwide Group FSRs, Long Term ICRs, and Long and Short Term IRs is also available.
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